EI090 | Spring | 3 ECTS

Advanced International Macroeconomics B: Policies to Harness Financial Globalisation

This course provides a graduate-level treatment of research on international financial integration, with an emphasis on empirical works. It documents the rising extent of financial linkages and the associated 'valuation effects' of asset prices on countries' wealth. It then considers research on the global financial cycle and whether the exchange rate regime can help absorb capital flows. The course then considers the development of international banking activity and its impact on policy transmission. It considers situations in which borrowing can be socially excessive, and concludes with a review of the use and effectiveness of international reserves, capital controls, and macroprudential policies. Evaluation will be in the form of a presentation of a paper from the syllabus and a critical literature of one of the topics.